Government Superannuation Co-Contribution
The Australian Government offers a superannuation co-contribution for low income earners. It is a payment made by the Government for people making after tax contributions to their superannuation.
Spouse Superannuation Contribution
Spouse superannuation contributions are sometimes used as a strategy to balance the superannuation balances between a husband and wife. Or, between the main bread winner, who is working consistently, and a spouse who is not.
Salary Sacrifice & Super
Salary sacrifice is a strategy used to divert money before income tax has been paid or withheld. It is commonly used in a superannuation accumulation strategy to direct money straight from an employer to an employee’s superannuation fund.
What are Super Non-Concessional Contributions?
Non-concessional contributions are contributions made to superannuation after tax. Since non-concessional contributions are made after income tax has been withheld or paid by the employer, typically, there is no tax paid when the money goes into the super fund.
What are Concessional Super Contributions?
Concessional contributions are contributions made to superannuation before tax. Concessional contributions typically arise from employer superannuation guarantee (SG) contributions and salary sacrifice arrangements.
Is debt bad?
Debt by itself is not always a bad thing – it’s what people do with debt that makes it a bad idea.
Return on Investment (ROI) Explained
ROI stands for Return on Investment and is one of the simplest and most versatile ratios to compare the profitability of investments. The formula to calculate ROI is the net return from an investment divided by its cost.
The Difference Between Price and Value
In finance, the price is what you are asked to pay, value is what you are willing to pay.
What is diversification?
Diversification is a portfolio management technique used to lower the risk of an investment portfolio.
What is a managed fund?
A managed fund is a pool of money managed by a professional funds management firm.
How does tax work in Australia?
The Australian tax system works by charging a higher tax rate for those who earn a higher income. It is a marginal income tax system.
What are franking credits?
Franking credits are a tax credit available to eligible shareholders of Australian companies. They are also called imputation credits.